In Process - Altria Reports 2008 Third-Quarter Results..

October 23, 2008 - Philip Morris USA market share dips to 50.5 pct vs 51. Altria's tobacco operations, which include Philip Morris USA and the John Middleton cigar business, helped offset increased allowances for losses at the Philip Morris Capital Corp and lower earnings from a stake in brewer SABMiller PLC (SAB.L: Quote, Profile, Research).

The Philip Morris USA unit shipped 4.8 percent fewer cigarettes, with the total falling to 44.9 billion.

Table 5 - PM USA Cigarette Volume* by Brand (Billion Units)

Q3 2008 Q3 2007 Change**
----------------------------------------------------------------------
Marlboro 37.5 39.1 (3.9)%
Parliament 1.5 1.5 (8.6)%
Virginia Slims 1.6 1.9 (12.9)%
Basic 3.2 3.5 (8.0)%
------- -------
Focus Brands 43.8 46.0 (4.7)%
Other PM USA 1.1 1.1 (7.8)%
------- -------
Total PM USA 44.9 47.1 (4.8)%

* Unit volume includes units sold as well as promotional units, and excludes Puerto Rico, U.S. Territories Overseas Military, Philip Morris Duty Free Inc. and contract manufacturing for PMI.

Altria's tobacco operations, which include Philip Morris USA and the John Middleton cigar business, helped offset increased allowances for losses at the Philip Morris Capital Corp and lower earnings from a stake in brewer SABMiller PLC (SAB.L: Quote, Profile, Research).

The Philip Morris USA unit shipped 4.8 percent fewer cigarettes, with the total falling to 44.9 billion.

2009 - "There's some things on the horizon, primarily the tax hikes, which are looking more and more likely, that may push prices up to such a point where consumers may start trading down (lower-priced options)," Morningstar tobacco analyst Philip Gorham, said, adding that "2009 will be the litmus test" for brand loyalty.

Reference: Altria Reports 2008 Third-Quarter Results, 10/23/2008; UPDATE 3-Altria profit beats view, sees 2009 challenges, Reuters, 10/23/2008.